MINNEAPOLIS -- Nortech Systems reported net sales fell 38% to $19.9 million for the period ended June 30.

The EMS company swung to a net loss of $1.5 million, down from net income of $552,000 a year ago.

After restructuring costs, the operating loss for the second quarter was $2.2 million, compared with operating income of $1.1 million for the second quarter of 2008.

During the quarter, operating profits were up 26% sequentially before restructuring costs. The firm took restructuring and impairment charges of $645,000 during the quarter.

Cash flow from operations was $1.3 million, and a new credit agreement has been signed, providing a $12 million line of credit through June 30, 201

In the second quarter, the company began to relocate personnel and production operations from its Aerospace Systems facilities in Fairmont, MN, to its Blue Earth, MN, facilities. Nortech also announced the closing of its printed circuit board assembly operations in Garner, IA, and is is consolidating operations at its facility in Merrifield, MN. Both actions are expected to be completed by the end of this month.

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